Saskatchewan Premier Scott Moe says he believes there is a “way forward” for Canada and China to resolve its trade dispute, as both countries work to recalibrate relations.
“There is a path for us to negotiate our way forward,” Moe said in an interview with CTV Power Play on Monday. “I have confidence that the federal government is finding their way to that table and to that space.”
Moe, who went on a trade mission to China in September, has been vocal about his desire to see Canada lift its tariffs on Chinese electric vehicles (EVs) to get Beijing to lift its canola duties.
According to Statistics Canada data, Saskatchewan’s exports to China dropped by 76 per cent in August compared to last year amid the tariff dispute with China.
Canada is currently undergoing a review of its decision under former prime minister Justin Trudeau to levy 100 per cent tariffs on Chinese-made EVs. The policy was made in concert with the United States.
In retaliation, China levied a 100 per cent tariff on Canadian canola oil and meal, and a 75.8 per cent tariff on canola seed. China has also imposed a 25 per cent levy on some seafood products.
But in an interview with CTV’s Question Period in October, Wang Di, China’s ambassador to Canada, said China will lift its canola tariffs if Canada drops its EV levies.
Speaking to host Mike Le Couteur on Monday, Moe pointed to both Mexico’s 50 per cent tariff and the European Union’s 45 per cent tariff on Chinese EVs, and acknowledged how the United States’ position on China remains a factor.
When asked about China’s quid pro quo offer, Moe said he has discussed it with Prime Minister Mark Carney, who he said is having those conversations with China.
“Ultimately … what is the return policy from China when it comes to not only canola, but pork and seafood as well,” Moe said. “Those discussions, I’m quite confident, are actually happening as we speak. And I have talked to the prime minister as recently as last Saturday night, prior to the Grey Cup game about just this.”
Asked by Le Couteur whether he has faith the tariff dispute can be resolved shortly, Moe said “that would be the intent.”
“I do have faith that we will get it resolved. I don’t know how quickly that will be,” he added.
In late October, Carney met with Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation summit in South Korea. It was the first meeting between the countries’ two top leaders in eight years.
Following Carney’s meeting with Xi, the two leaders directed their officials to move quickly to resolve outstanding trade issues and irritants.
Carney afterwards described the situation with China as complex and said immediate action on reducing tariffs is not realistic.
The relationship between Canada and China soured significantly in 2018, after Canada arrested Huawei executive Meng Wanzhou on behalf of the United States over bank fraud charges.
Days later, China detained Kovrig and fellow Canadian Michael Spavor over allegations of espionage — accusations they denied. Both men were eventually released after spending more than 1,000 days in a Chinese prison, not long after Meng herself was released from house arrest.
Allegations of foreign interference against China have also persisted, with the final report of the Public Inquiry into Foreign Interference calling China “the most active perpetrator of foreign interference targeting Canada’s democratic institutions,” earlier this year.
But amid the trade war with the U.S., Carney has sought to diversify Canada’s economic partnerships.
The prime minister has also accepted an invitation from Xi to visit China at a “mutually convenient time.”
